The Magic of Moving Average Crossovers

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What Does Technical Analysis Tell us about the US Dollar?

One look at the US Dollar in July 2017, and you just felt sick.

Unless, of course, you were short the currency or held gold at the time. 

But for those with hopes for a near-term recovery in July 2017, it was best to just find somewhere else to park an investment. 

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Bollinger Bands and the Rubber Band Effect

If you pull a rubber band too far, too fast, what happens?

It snaps back, right?  The same thing happens with stocks, indexes, and currencies.  If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean.  In fact, we see it happen all the time.

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Stop/Loss Management: Where Should I Place My Stops?

Money management is an essential part of any trade.

If a trade begins to go against you, or even if a trade did exactly as you had hoped, knowing when to get out, is important. Look at the U.S. dollar for example. Let’s say you bought the currency around 97.30 in November 2016 before it began to run to a high of 103.81 by late 2017.

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Japanese Candlestick Patterns: What Can a Doji Tell You?

To the average trader, candlestick patterns are just a bunch of crosses and odd shapes with weird names, like the abandoned baby, three white soldiers, and piercing lines.

But as odd as they may sound, even the craziest one can help give you a significant trading edge.

 

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Trading Support and Resistance with Currencies

When it comes to trading, none of us have a crystal ball.

We can’t tell you with obscene accuracy what’s coming next. 

But what we can help you do is attempt to gauge the possible intentions of buyers and sellers.  One of the easiest ways to do that is by simply identifying patterns of historical support and resistance, which lets us know where buyers and sellers are reaching a point of exhaustion.

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Technical Analysis 101: Flag and Pennant Patterns

Once you begin to understand technical analysis, you’re literally looking at a consolidated view of the very forces of supply and demand – the two key forces that drive markets. 

We’ve already discussed some of the most powerful and most used patterns, like Bollinger Bands, Fibonacci retracements, relative strength, head and shoulder patterns, breakouts, and even how to use candlesticks.

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Technical Analysis 101: Engulfing Candlestick Patterns

To the average trader, candlestick patterns are a bunch of crosses and oblong shapes with odd names, like the abandoned baby or the doji cross.  But once understood, even the craziest sounding candlesticks can help make you a fortune.

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Technical Analysis 101: The Inverted Head and Shoulders

Chart patterns play an essential role in our success.

They highlight the chief driver of all stocks and indexes -- fear and greed. They highlight the psychology of thousands of traders. Ignoring that can be costly.

 

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Relative Strength (RSI): What it said about the EUR-USD

One of the most commonly used technical indicators is relative strength (RSI).  It’s simply a momentum oscillator that measures the speed and change of the price of a stock, an index, an ETF, even currency.

When it moves to or above its 70-line, we have an overbought condition.  When it moves to or below its 30-line, we have an oversold condition.  Simple enough.

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Technical Analysis 101: The Cup and Handle Pattern

Admittedly, some technical patterns have bizarre names.

Spot them in time though, and you stand to do explosively well.  One of those is the cup and handle – one of the oldest chart patterns you’ll find.  It’s also one of the more reliable of technical indicators, too.

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Using Trend Lines to Spot an Opportunity in Gold

Simplicity is always the key to success.

Sometimes, all it takes is drawing lines on a chart. 

In fact, it helped us catch another one of gold’s most profitable moves. 

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Technical Analysis 101: The Head and Shoulders Pattern

There are still traders that refuse to subscribe to technical analysis.

But after 20 years of using it, I can tell you from experience, it works beautifully. 

In fact, it’s an important tool because it chronicles price trends. 

By being away of those trends, you can better react to market changes and better manage your risk.  It can also help you time your trade.  And, if you can successfully time your trade, you become more disciplined and successful as a trader.

 

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